Jindal Stainless Q1 Results Review - Strong Sequential Improvement In Ebitda/Tonne: Prabhudas Lilladher

Prabhudas Lilladher Report

Jindal Stainless Ltd. reported weak but better-than-expected standalone operating performance in Q1 FY25. Ebitda per ton improved 20% QoQ from weak Q4 FY24 levels on the back of uptick in nickel prices, and focus on high margin grades.

Although key export markets such as Europe and the U.S are experiencing softer demand and higher freight costs due to the Red Sea crisis, management. is focusing on newer markets such as Japan, South Korea and Middle East and North Africa region.

Domestic volume growth remained strong at 14.3% YoY during the quarter affected by general elections. With Government of India’s persistent focus on infrastructure development and rising railway capex, we expect Jindal Stainless to deliver strong 15%+ compound annual growth rate over FY24-26E as it has adequate capacity.

With NPI and Chromeni assets getting commissioned in H2 FY25, Jindal Stainless is set to deliver the best volume growth in the metals space. Mgmt. increased its FY25 capex guidance to Rs 55 billion post acquisition of pending 46% stake in Chromeni.

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